- Crypto analyst Egrag Crypto noted that the weekly candle at $1.94 for XRP formed an inverted hammer
- Another analyst, ChartNerd, pointed out that the RSI compression and Stochastic RSI are in oversold territory
- FOMC delivered its final rate decision of this year on December 10, cutting the US federal funds rate by 25 basis points to a range of 3.50% to 3.75%
Several technical analysts on X are pointing to early signals that XRP’s price might be reversing. They suggest the recent sell-off could be ending, with a potential bottom forming that might lead to a short-term upward move.
Crypto analyst Egrag Crypto noted that weekly candle near $1.94 formed an inverted hammer, a pattern traders often treat as one of the strongest single candle bullish reversal signals when it prints after a clear downtrend.
Related: Should You Buy the Dip? Analyzing the Crypto Market Crash After Fed’s 25 bps Cut
Egrag broke down the odds of where the price goes next, believing there is a 40% chance the lowest point has already been reached for now. The analyst also said that there’s a 35% chance of a slight, brief drop occurring before the definitive market floor is established, and a 25% chance that the current upward-looking pattern will break and the market will keep falling.
Notably, Egrag clarified that this is not a sure thing yet, as XRP needs to keep closing higher and form a clearer pattern to prove that a real upward turn is starting.
RSI Compression and Oversold Signals Support a Short-term Bounce
ChartNerd, another crypto analyst, highlighted that recent volatility (partly driven by events such as the US Federal Open Market Committee rate decisions) is affecting short-term price stability for XRP.
He noted that the RSI compression and Stochastic RSI are in oversold territory, which can often precede a bounce if buyers absorb selling pressure.
ChartNerd also pointed out that XRP’s monthly RSI is at about 54, which is slightly positive. This means if the price dips a bit and the RSI falls to around 50, it might just be a normal pause in a larger uptrend and not the start of a bigger drop.
In the end, he views this as a possible buying opportunity, saying the price might drop to test key support around $1.90 before moving higher again, especially if the overall economic backdrop steadies.
FOMC Delivers Third 25 bps Cut As Markets Reprice Risk
Speaking of the FOMC, it delivered its final rate decision of this year on December 10, cutting the US federal funds rate by 25 basis points to a range of 3.50% to 3.75%.
The decision marked the third consecutive rate cut this year as policymakers balanced progress on inflation against concerns around growth and employment.
Related: Analyst Predicts XRP’s Explosive Jump From $2 to $10 in Under 12 Months, Fueled by ETF Demand
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Source: https://coinedition.com/xrp-shows-bullish-reversal-signs-after-fomc-rate-cut/
